Gold rallies to lifetime high on hopes of Monetary stimulus

Business

oi-Sneha

By Sneha B K

Published: Tuesday, June 19, 2012, 15:45 [IST]

Gold futures rallied smartly on Tuesday on increasing hopes of further monetary easing by the Central banks across the globe. The comments from the Federal Open Market Committee (FOMC) will be eyed for a further stimulus. The FOMC is expected to address the media after their two day meet ends on Wednesday.

Investors are buying gold on the belief that it holds its value well when the outlook for other assets is less rosy.

International spot gold was seen trading at US$1,630 an ounce, continued its winning streak.

At 03.00 pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was trading at Rs 30, 141 up by Rs 103 per 10 grams.

And, gold for month of October delivery was trading at Rs 30,700 per 10 grams.

Domestically gold rose and reached a new height with gold of 99.9% and 99.5% purity seen trading at Rs 30,750 and Rs 30,600 per 10 grams, respectively. Domestic gold picked up reflecting overseas trend.

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